How do CFOs determine the right size for a credit facility?

Sizing a credit facility involves both short-term and long-term liquidity analyses. CFOs evaluate operating cash flow needs, potential capital expenditures, growth plans, and downside scenarios to determine a facility size that meets liquidity requirements without overpaying for unused capacity.

What are the key terms in a credit agreement?

Key terms in a credit agreement include the loan structure, pricing tiers and interest rate mechanics, commitment fees, collateral requirements, maturity dates, and the roles of the administrative agent and syndicate lenders. Understanding these terms is essential for CFOs to negotiate competitive and flexible financing.

What are loan covenants and why do they matter?

Loan covenants are contractual obligations embedded in a credit agreement that a borrower must comply with throughout the life of the loan. They fall into three categories: affirmative covenants (actions the company must take), negative covenants (actions the company must avoid), and financial covenants (metrics the company must maintain, such as a minimum Fixed Charge Coverage Ratio or maximum leverage ratio). Breaching a covenant can trigger a default, making them a critical negotiation point.

When should a company refinance its credit facility?

A company should consider refinancing its credit facility when market conditions are favorable — such as when credit spreads have tightened — or when the existing facility no longer meets the company's capital needs. Refinancing can be used to reduce interest expense, extend the maturity date, increase the facility size, or improve covenant flexibility.

What is the difference between refinancing and restructuring a credit facility?

Refinancing is an opportunistic process undertaken from a position of financial strength, where a company seeks better terms, lower rates, or additional capacity. Restructuring, by contrast, is typically a distressed process where a company that is struggling to meet its debt obligations negotiates with lenders to modify repayment terms, reduce principal, or avoid default. The two processes are fundamentally different in leverage, timeline, and outcome.

What are the 5 steps to securing a new credit facility?

The five steps to securing a new credit facility are: (1) Assessing the current market and credit environment; (2) Preparing financial documentation and credit materials; (3) Identifying and selecting the right lenders for your company's profile; (4) Running a competitive bid process to maximize terms; and (5) Negotiating and closing the credit agreement, often with the support of an experienced financial advisor.

What scenario and contingency planning should a CFO conduct for a credit facility?

CFOs should model both upside and downside scenarios to stress-test how much liquidity the business may require under different conditions. Downside planning should account for revenue shortfalls, margin compression, and unexpected capital needs. Building adequate buffer into the facility size protects the company from being forced into an emergency refinancing or covenant breach during a downturn.

Is the CFO's Guide to Credit Facilities free to download?

Yes. The Credit Facility Playbook by Keene Advisors is available as a free download. It covers 8 in-depth topics including facility types, sizing, loan covenants, credit agreement terms, refinancing strategy, and how to run a competitive lender process.

Who is this credit facility playbook designed for?

The playbook is designed for CFOs, corporate finance executives, and finance leaders who are responsible for managing their company's capital structure, liquidity, and debt obligations. It is particularly valuable for companies evaluating a new credit facility, approaching a refinancing, or seeking to better understand their existing credit agreement.

A detailed guide to help CFOs and Corporate Finance executives navigate their company’s credit facility

Free Playbook · Keene Advisors

The CFO's
Guide to Credit
Facilities

Master capital structure, liquidity management, loan covenants, and refinancing strategy — from experienced investment bankers.

$45B+Transaction experience

200+Companies advised

15+Years of
independence

01What Is a Credit Facility?

02Sizing a Credit Facility

03Scenario & Contingency Planning

04Terms of a Credit Agreement

05Key Loan Covenants

06Refinancing a Credit Facility

07Refinancing vs. Restructuring

085 Steps to Securing a New Facility

To invest in future growth, having access to a well-structured credit facility should be a CFO or Finance Leader’s top priority. From optimizing your capital structure to ensuring liquidity, learn to refinance your credit facility to access additional working capital, fund growth initiatives, and navigate unforeseen challenges.

What's Inside

8 Topics Covered In Depth

A comprehensive playbook for CFOs and finance leaders — from sizing your facility to negotiating the most competitive terms.

01

What Is a Credit Facility?

Revolving credit lines, term loans, and flexible structures that support operations, acquisitions, and growth initiatives.

02

Sizing a Credit Facility

Short-term and long-term liquidity analyses to determine the right facility size for your capital and cash flow needs.

03

Scenario & Contingency Planning

Upside and downside planning frameworks to stress-test capital requirements and build adequate buffer into your facility.

04

Terms of a Credit Agreement

Loan structure, pricing tiers, fees, collateral, maturity dates, and key lender roles explained clearly for CFOs.

05

Key Loan Covenants

Affirmative, negative, and financial covenants — including FCCR, leverage ratios, and EBITDA add-back negotiations.

06

Refinancing a Credit Facility

When and how to refinance to reduce interest expense, extend your maturity date, or amend your rate structure.

07

Refinancing vs. Restructuring

Key distinctions between opportunistic refinancing from a position of strength and distressed debt restructuring.

08

5 Steps to Securing a New Facility

Market assessment, lender selection, running a competitive bid process, and the value of a third-party financial advisor.

Why Keene Advisors

World-Class Corporate Finance, Built for CFOs

Advisors with deep experience structuring and negotiating credit facilities across mid-market to
Fortune 50 companies.

$45B+

In M&A, capital raising &
restructuring transactions

200+

Companies advised
over 20+ years

"

Vision without execution is hallucination.

Thomas Edison

Quoted in Keene Advisors CFO Playbook

Keene Advisors Insight Series: Corporate Debt Financing

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The credit spread environment remains favorable for refinancing existing credit facilities and originating new corporate credit. Companies with existing credit facilities maturing in the next 12-24 months should consider refinancing in the current credit spread environment, as doing so may generate substantial savings in long-term borrowing costs.

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Determining the Right Size for Your Company’s Revolving Credit Facility: A Guide to Liquidity Management

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